Resilience in the FMCG & Retail Sector has been saved
Resilience in the FMCG & Retail Sector
Technological advancements, sustainability, “work from anywhere”, and connected business models are key for building “RESILIENCE” in the Indian FMCG and retail sectors: Deloitte−FICCI report
- Riding on the growth of online channels, FMCG companies are re-evaluating their business models and expanding their online and social commerce.
- The global pandemic has also pushed the FMCG and retail sectors to adopt sustainable initiatives across the value chain in line with the changing business environment.
- FMCG and retail companies are adopting innovative technologies to be future-ready.
- Kirana stores are also adopting digital technology to improve operations and have better connectivity with their end consumers.
National, 23 September 2021: Deloitte Touche Tohmatsu India LLP (DTTILLP) and FICCI launched the fifth edition of their joint report called RESILIENCE in the FMCG and Retail sector at the annual edition of Massmerize 2021.
This year’s report emphasises on the need for FMCG and retail companies to rapidly adapt to the “new normal” by displaying RESILIENCE, defined as follows:
RE – REdefine the channels
SI – Sustainable Initiatives to conduct business responsibly
LI – Leveraging Innovation in technology
EN – ENabling kiranas
CE - Connected Employees in a new work environment
This will enable them to succeed and redefine their strategies for building a holistic approach, and enhancing consumer and shopper experiences.
According to the report, FMCG and retail companies have shown ‘Resilience’ in every business area to rebound from the second wave. From manufacturing to their sales operations, to retail and logistics, to consumer insights and communication, to the way they recruit, train, and develop people. Building resilience will enable businesses to withstand future challenges and continue to create value for consumers and the economy.
Speaking on the launch of the report, Rajat Wahi, Partner, DTTILLP, said, “With the massive disruption brought about by the pandemic, businesses across the world were forced to “respond, recover, and thrive” by finding new ways to quickly adapt to the post-COVID-19 world. As organisations rapidly adopt technology to operate in connected ecosystems, they have an urgent need to enhance their presence in online channels. Organisations also need to revisit their strategies to have flexible distribution networks, accelerate adoption of omni-channel strategy, digitise supply chain, and strengthen sustainable business practices to create a seamless consumer experience.”
Speaking on the launch of the report, Mr. Dilip Chenoy, Secretary General FICCI, said, “In our economy, sectors such as retail, Fast Moving Consumer Goods (FMCG), and e–commerce are consumer centric and can be the significant accelerators of the economy soon as consumer confidence enhances”
In the consumer sector, rapid changes have enabled companies to identify blind spots across their operations to incorporate flexible and sustainable initiatives as an integral piece of their business models. Innovation in technology, digitalisation in supply chain, and tech-enabled kiranas have opened new growth opportunities for the FMCG sector.
Key trends from the report
- Redefine the channels to create a digital ecosystem to reach end-consumers. FMCG companies need to explore their Direct to Consumer (D2C) operations and expand their social commerce.
- Companies need to focus more on Sustainable Initiatives, including responsible sourcing, sustainable production, and packaging, end-to end visibility, integration, agility, and optimisation, to conduct business responsibly.
- Firms need to Leverage Innovation in technology to re-engineer their business models and find a way around crises such as frequent lockdowns and closures, movement restrictions, and consumption shift from offline to online.
- The pandemic helped expand business by pushing kirana stores/neighbourhood mom-and-pop shops to rapidly adopt technology.
- The crisis also led companies to significantly revamp their digital programmes and transition to the future of work. Work from home ensured Connected Employees in a new work environment.
Notes to the editor for reference purposes only:
This press release has been issued by Deloitte Touche Tohmatsu India LLP.
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